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Edward Jones Review: High Fees, Bad Reviews

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Investing is all the buzz these days, with people of all ages looking for ways to invest their money.

With the birth of automated systems and robo advisors, there is now more competition than ever, forcing some traditional investment firms to revise their strategy.

One group of financial advisors that’s still in the game is Edward Jones, a group that has a bit of a rocky presence online.

We’ll take a look at this love/hate relationship and see if it’s worth investing your time (and money of course).

What Is Edward Jones?

Since 1922, Edward Jones has been in the business of helping individuals and companies invest their money wisely.

Throughout the years, they’ve served more than 7 million clients around the United States and Canada, making them one of the longest-running investment firms around.

They have a long list of services that include investment management services and personal financial advising.

Unlike some of the new tech-heavy firms online, Edward Jones is sticking with the human aspect and providing one-on-one customer care for all of their current and future clients.

How Does Edward Jones Advisory Services Work?

Because there is a human element involved, the first thing potential clients will do is meet with their advisor.

During this time, the client’s financial goals are assessed along with their financial situation.

The aim is to find options that help clients reach their goals and build up a financial portfolio that is feasible to maintain yet effective for building up revenue.

What Does Edward Jones Offer Investors?

Once a potential client has their first meeting with an advisor, they can expect a detailed outlook of options to help them reach their goals. A few key things that they do in the process include:

  • Build a customized investment strategy
  • Check out relevant stocks
  • Determine the fair price of stocks
  • Creates a long-term plan that caters to the client’s wishes.

Edward Jones Account Options

The investment group has a few account options, most of them catered to different types of investors.

These account types include:

1. Guided Solutions Funds

  • Minimum Investment: $5,000
  • Commission-Based

2. Guided Solutions Flex

  • Minimum Investment: $25,000
  • Asset-Based

3. Advisory Solutions Fund

  • Minimum Investment: $25,000
  • Asset-Based

4. Advisory Solutions UMA

  • Minimum Investment: $500,000
  • Asset-Based

Retirement Accounts

When it comes to planning what to do with one’s life’s savings, Edward Jones has a few options. These include IRAs and Roth IRAs on top of401k and custodial accounts.

These accounts come with estate planning and trust services. Both of which are put in place to assist with the financial future of their clients.

Brokerage Account Options

As far as brokerage accounts, Edward Jones offers a few options to those who like to be more hands-on with their investments.

Their accounts come with guided solutions and even some decision-making advisors that will take the guessing out of investing and allow clients to just get in and plan their financial future.

529 Plans

A 529 plan from Edward Jones is a tax-advantaged savings plan that is meant to build up money over time for college.

There is no minimum contribution and parents, or guardians can feed money into this type of account over time to grow it with help from collected interest.

Cash and Credit

The investors offer several ways to access cash and even have a credit card that allows clients to earn Loyalty points.

Debit and credit cards are both Mastercard and are accepted wherever major credit cards are accepted and more.

In addition to cash and credit, customers have the option to get checks and savings account too.

Any of these accounts are perfect for getting ahold of investments, something that all investors want to do as quickly as they can.

Edward Jones Wealth Strategies

When it comes to wealth strategies, the investment group offers several.

When choosing a strategy, investors should look at their financial goals not only for themselves but for future generations as well, choosing a wealth strategy from the following options.

Guided Solutions

With this option, investors will still be able to dabble with their money but will have guidance along the way.

Financial advisors will work one-on-one with potential clients to help them build up the portfolio they want and give advice along the way.

Advisory Solutions

This solution is perfect for those that want to invest but don’t want to do the bulk of the work.

Instead, investors can pass the reins over to an analyst that will research the market and make all of the calls when it comes to investing money.

Client Consultation Group

Your financial advisor will not work alone on this type of account. With this account type, advisors will have a team of more than 5,000 investment professionals giving them expertise and advice on where to put their money.

This group will work for your money around the clock to grow it to higher levels than you might be expecting.

Does Edward Jones Have Any Fees?

Edward Jones does have fees. Fees are one of the biggest downfalls according to reviews online, making them something that you should check out before you decide to invest.

When you put them head-to-head with the competition, you’ll find that their fees are higher than most. Here, we’ll break down their fees to help you decide if this is the investment firm for you.

Edward Jones Fees Explained

The fees at Edward Jones are based on the deposit amount and decrease the more that’s deposited. For the first $250,000, investors will have an annual fee of 1.35%.

The next $250,000 goes to 1.30% and the next $500,000 goes to 1.25%. If accounts reach over $10,000,000, investors are looking at an annual fee of 0.50%.

Trading fees come in at $4.95 per trade, something that could add up over time.

Some other fees that you have to keep your eyes open for before investing include:

  • Stocks – expect to pay 2.5% of the invested amount
  • IRAs – There is an annual fee of $40 along with $20 for each additional account

There are other fees involved, most of which depend on the type of account you have and the amount that you have invested. The more you have, the less your fees.

Edward Jones Poor Customer Reviews

If you’ve ever surfed around the web for information about Edward Jones, you might have found that there a number of poor reviews.

These reviews often point out the high fees and the fact that some customers have lost money.

Still, when investing, that’s the name of the game and something that all investors should consider before signing up.

In some of the most common threads out there, a large number of those with negative things to say were typically using robo advisors.

When comparing robo advisors to investment groups like Edward Jones, there is one big thing they don’t have in common, fees.

Robo advisors are popular on the web for little to no fees, something that you don’t get with a face-to-face advisor.

Still, it’s worth noting that Edward Jones offers a human touch, something that robo advisors can’t.

Many of the financial advisors have been in the business for years and know how the market works forward and backward.

Edward Jones Pros and Cons

Pros:

  • Lots of local offices
  • Wealth management assistance from professionals
  • A very passive platform
  • Low fees for very high balances

Cons:

  • High fees for low to moderate amounts
  • Not keen on active trading
  • They shy away from many popular investments
  • The commission makes financial managers more ready to trade

How Does Edward Jones Compare to Other Financial Advisors?

When you throw up Edward Jones next to the competition, you’ll notice a few things. First of all, the presence of robo advisors smashes the high rate from Edward Jones.

On top of that, other firms have better reviews and different features, some of which make them more appealing. For a look at how they stand up to their top competitors, take a look below.

#1. Facet Wealth vs. Edward Jones

Facet Wealth is a lot like Edward Jones, adding that personal touch. Where they fall short is when it comes to annual fees, which go from $1,800 to $6,000.

#2. Betterment vs. Edward Jones

Betterment doesn’t have a minimum when it comes to opening an account plus, offers 410K. They crush Edward Jones when it comes to customer reviews, getting many positive ones from around the web.

#3. Edward Jones vs. Personal Capital

Personal Capital offers automated advice but comes with an account minimum of $100,000. That’s pennies compared to Edward Jones.

4. Ellevest vs. Edward Jones

With Ellevest, there is no account minimum and fees fall somewhere between $1 and $9 per month. This platform targets women and says to take all of the guesswork out of investing too.

#5. The Motley Fool vs. Edward Jones

Apart from a financial advisor, investors will have a long list of educational tools that they can use right from the website.

Returns are phenomenal and reviews are amazing making The Motley Fool a good one to look out for.

#6. Fisher Investments vs. Edward Jones

Fisher Investments is another wealth management firm that comes with high-fees and various solutions to help you manage your wealth.

However, like the case with Edward Jones, there are better alternatives listed above.

Frequently Asked Questions

Is Edward Jones a Good Investment Company?

The one downfall about Edward Jones is the fees. However, if you can get past that, they are actually a pretty solid investment firm, offering a unique experience with real human advisors. For those that like to invest with people and get their questions answered, Edward Jones is a solid choice.

Still, with the new trend of robo advisors, you might not want all these services and the fees, so it’s up to you to decide the type of investing you want to go for.

What Are the Fees for Edward Jones?

The fees that you have to pay when you invest with Edward Jones depend on the type of account you have and the type of investments you want to make. For instance, trades come in at $4.95 per trade. On top of that, you may be subject to fees with the minimum amount in your account.

For any amount less than $6,000, you can expect to pay about 2.50%. Take that up to the $10,000 range and you’re looking at paying about 1.50%.

How Do Edward Jones Advisors Get Paid?

Because there are no robo advisors, Edward Jones advisors generally get paid on straight commission.

That means that the more they trade, the more they collect in their pocket.

For each trade that they make, they are usually making a cut of about 36% to 40%, something that can be significant if they grow your money substantially.

Though many investors see this as a bad thing, it can be a good thing as they have an incentive to get in there and trade to make the most money possible.

Bottom Line: Edward Jones Review

As you can see, Edward Jones is a viable option; however, it is expensive and there are better alternatives. Moreover, the fees charged by Edward Jones are aggressive and a tad bit absurd.

We encourage you to explore other options, such as Facet Wealth or Betterment.

Kim Pinnelli

Kim Pinnelli

Kim is a personal finance expert with a Bachelor’s degree in Finance from the University of Illinois at Chicago. She has been freelance writing for 13 years for a number of large publications. Kim thoroughly enjoys helping people take charge of their personal finances.

Sours: https://simplemoneylyfe.com/reviews/investing/edward-jones/

Edward Jones

Rated with 4 stars
Gregory of Wood River, IL Verified Reviewer
Original review: Dec. 28, 2020

I've read mixed reviews regarding Edward Jones. What I've gleaned from them is the service can vary greatly from one location/advisor to another. My advisor does a stellar job in looking out for my best interest. His office manager does a fantastic job as well. In regards to the "Guided Solutions" accounts- I have one that is, one that isn't. The jury is still out on whether the Guided Solutions account out-performs the other account by enough to justify the greater fees assessed. One year out of the last three it did not appear that my count was reflecting the huge run-up in the markets. However, my account is up nearly 25% in the last 12 month period to date so feel good about that. Just a bit concerned with a correction. As with others, your account is not FDIC insured like a savings account.

Rated with 4 stars
Cathy of New Bern, NC Verified Reviewer
Original review: Nov. 30, 2020

I've been working with the same advisor since 2010, so one of the things I like about EJ and my situation is the stability of advisors. My guy has been very accessible, and willing to come to me or to have me come to him (or to do video during the pandemic). I feel he does have my best interests at heart, and helps me set up accounts and determine funds to participate in to maximize my benefits as I near retirement.

I have accounts that are in their Guided Solutions plan, and while those accounts are doing well it does seem expensive for their management. I have other accounts that don't incur monthly fees but are transactional. Those see less buying / selling than the managed accounts. This year I helped do income taxes for VITA, and many of my coworkers commented about the amount of buying and selling they see with many EJ account holders, so that they're hit with capital gains / losses. I've worked with my guy to manage those recently so that I don't get surprised at tax time.

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Rated with 5 stars
Debra of Bryant, AR Verified Reviewer
Original review: Nov. 29, 2020

I have my funds managed by Kelly ** with Edward Jones. From our first visit, she personally reviewed my assets, my goals, risk factors, and various important things before presenting her investment strategy. She listened carefully to me and my concerns. After that she was able to devise a plan to help me grow my money. Kelly and her team have been diligent in keeping me informed about the market and checking in with me to make sure I was satisfied with her performance. I receive weekly emails informing me about the market, seminars, webinars, and various informational meetings she was conducting for her clients.

Rated with 5 stars
Ann of Cranford, NJ Verified Reviewer
Original review: Nov. 28, 2020

My Edward Jones Advisor and his staff are responsive, professional and courteous. We are kept informed in good times and in bad. I feel confident that he always has our best interests at heart. He is an experienced expert and a kind and caring individual. All questions are answered completely regardless of how inconsequential they may be. I would recommend him highly to anyone looking for professional financial advice.

Rated with 5 stars
Carolyn of Chapel Hill, North Carolina Verified Reviewer
Original review: Nov. 27, 2020

My current advisor took over from a long-time trusted local Edward Jones financial advisor. Tom ** is younger, and I'm older now (78). I can imagine that age gap being an issue for some. But I must say, Tom and his staff have made me comfortable. They frequently reach out, are very personable, and tho we don't get together in person (because of Covid), I've come to feel I know and trust them.

Rated with 1 star
JOHN of Murfreesboro, TN Verified Reviewer
Original review: Sept. 4, 2021

A few days ago I met with a financial advisor with this company, who had an office in Murfreesboro, TN. I was impressed with the meeting and I made plans to move a substantial amount of stock to the company. When I arrived home I had an email trying to get me to sign up for online services. I did what most people don't do: I read the "agreement" that became binding if I used the online service. Down about paragraph 18 there was an indemnity agreement whereby the client agreed to indemnify Edward Jones, its provider, and all of its third parties. I did not use the online service and I notified the advisor that I would not use it because of the indemnity agreement. Later the advisor sent me an email stating that Edward Jones could not help me. Beware of this company!!

Rated with 1 star
Judy of Osseo, MN Verified Reviewer
Original review: Aug. 21, 2021

Edwards Jones is a big company who stole our money by freezing our account. Corporate office will not talk to us. When we called in to corporate, they just ask if we are speaking with our rep. We don't want to speak to our rep because he doesn't have the answers. To this day we have not received one letter on why our account is frozen. They continue to charge us fees on the frozen account. They basically stole our money. Now we have to hire expensive attorneys to try and get our money back. I am warning everyone not to do business with this company. All is great until it's not. Good luck!

Rated with 5 stars
Phillip of Marana, AZ Verified Reviewer
Original review: Aug. 13, 2021

She has been with us for many years. Our portfolio has increased well and we are able to use some of that to pay property tax. She make all the adjustments and they have been on target. Well done. We even moved to another state and kept her service.

Rated with 5 stars
Bob of Killen, AL Verified Reviewer
Original review: July 29, 2021

Our advisor got us to retirement and now is helping us enjoy our retirement. He is also making sure our grandsons will have money for college or to start a business. We did not, nor do we now have a lot of money, but it did not matter to him the amount of the initial investment. I cannot say that about all the advisors we have had.

Rated with 1 star
Andy of Osseo, MN Verified Reviewer
Original review: July 15, 2021

They froze my mother's account which was being paying her medical bills due to a difference in date in which I had the POA and her diagnoses. I now have to spend $10,000 on a guardianship. I will never do business with this company again. Plus their fees are super high and you have to always go through your rep for everything. I recommend to everyone to manage their own money through Fidelity or some other firm.

Sours: https://www.consumeraffairs.com/finance/edward-jones.html
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Edward Jones Employee Reviews

Great place overall, but times are changing and BOAs should get paid more

Senior Branch Office Administrator (Current Employee) - Kyle, TX - August 6, 2021

The BOA experience is solely dependent on the dynamic within each office. Having a good working relationship and understanding of your FA is key. I am extremely fortunate to work in an office with other amazing women. We are driven and successful and truly feel like we are impacting our community. The work is enjoyable. Since regulations, laws, the system and client scenarios change over time, it keeps the job from becoming repetitive, everyday is different. That said, it is a common conversation firmwide that BOAs are not compensated for the work, knowledge and commitment they offer in terms of driving the success of the business. Especially in today's world where many workplaces are adapting to the times and offering higher pay. My skills are vital to our office, clients sometimes value their relationship with the BOAs over that of the FA, but we don't seem to get compensated in a way that reflects that level of importance.

Pros

Flexible, Bonus payouts, profit sharing, limited partnership opportunities, my office mates are fabulous

Cons

Varies on each individual office enviroment

Sours: https://www.indeed.com/cmp/Edward-Jones/reviews

Edward Jones, the St. Louis, Missouri-based full-service brokerage firm, is one of the most recognizable names in its industry. Providing a wide range of investment advisory services, brokerage services and other products, Edward Jones is a one-stop shop for those looking for personalized guidance and face-to-face interaction. While their fees may seem steep when compared to several discount brokers or robo-bankers on the market today, some may find the wide range of services and personalized approach of their financial advisors worth the money.

Edward Jones Background

Founded in 1922 in downtown St. Louis, Edward Jones has grown from a single office into a nationwide, full-service brokerage firm with branches all across the country. The firm works with just shy of 7 million clients, and it operates more offices than any other investment firm in the U.S. Founded by Edward D. Jones himself, the firm has seen five different managing partners, including the current managing partner, Jim Weddle.

Edward Jones Client Types and Minimum Account Sizes

Edward Jones works with individuals as well as business owners and their employees. It also provides business services to individuals who are self-employed. The firm manages assets for individuals with and without high net worth, as well as pension and profit sharing plans, charitable organizations, corporations and other partnerships, investment clubs and limited liability companies.

The minimum account size will depend on the type of account you open. For instance, the Guided Solutions Flex Account has a minimum of $25,000, but the Guided Solution Fund Account only has a minimum of $5,000.

Edward Jones Account Options

As a full-service firm, Edward Jones has a wide variety of options when it comes to accounts. You can have a regular taxable brokerage account, traditional IRA, Roth IRA, 401(k), custodial account, college savings account and more.

If you’re interested in wealth management services, Edward Jones has four main options:

  • Guided Solutions: For clients who prefer to be more hands-on with their investing, this option allows you to manage investments with the help of an advisor’s guidance.
  • Advisory Solutions: This option leaves daily decision-making to the advisor and is better for those who’d rather not deal with the details.
  • Client Consultation Group: With this option, a group of specialized Edward Jones professionals will assist your advisor in developing your wealth management plan.
  • Estate Planning and Trust Services: The trust services program is used by clients to develop and manage a lasting legacy and also assist with more present financial needs.

Edward Jones Investment Philosophy

Edward Jones selects stocks, bonds, CDs, mutual funds, exchange-traded funds (ETFs) and Unit Investment Trusts (UITs) for its clients based on a buy-and-hold philosophy. In other words, the firm prioritizes reliable, long-term growth over short-term plays.

Fees Under Edward Jones

The fees you pay will depend on the type of product you purchase. When using the investment advisory services like the Guided Solutions and Advisory Solutions programs, your fee rate will be based on the value of the assets in your account. The higher the asset value, the lower the fee.

Value of Assets in AccountAnnual Fee Rate
First $250,0001.35%
Next $250,0001.3%
Next $500,0001.25%
Next $1,500,0001%
Next $2,500,0000.8%
Next $5,000,0000.6%
Over $10,000,0000.5%

In addition to this program fee, clients may also pay a portfolio strategy fee, with fees based on the rates below.

Value of Assets in AccountAnnual Fee Rate
First $250,0000.19%
Next $250,0000.19%
Next $500,0000.18%
Next $1,500,0000.17%
Next $2,500,0000.12%
Next $50,000,0000.09%
Over $10,000,0000.09%

The following table breaks down advisory fees at Edward Jones. Please note that these are merely estimates and actual fees will vary. These estimates only take into account the base advisory fee.

Estimated Advisory Fees at Edward Jones*
Your AssetsFee Amounts
$500K$6,625
$1MM$12,875
$5MM$47,875
$10MM$77,875

Awards and Recognitions

Edward Jones received the second-highest score in the J.D. Power 2018 Full Service Investor Satisfaction Study. The firm received first place in the same study in 2015. In 2017, the firm received an award from WealthManagement.com for corporate social responsibility.

Brokerage Partnerships

As mentioned previously, Edward Jones receives revenue sharing payments from virtually every mutual fund, 529 program and annuity that it purchases on behalf of their clients.

What to Watch Out for

Edward Jones has mutiple disclosures reported on it ADV form. In 2004, Edward Jones paid $75 million to the Securities and Exchange Commission (SEC) as part of a settlement after it was alleged that the firm failed to disclose revenue sharing payments it received from a group of mutual fund families.

If you have a brokerage account with Edward Jones and your portfolio includes mutual funds, Edward Jones likely is receiving revenue sharing for those products and therefore has a conflict of interest. The same is true if you’re in a 529 plan or you’ve purchased an annuity. Edward Jones does not receive revenue sharing payments for assets within investment advisory programs like Guided Solutions and Advisory Solutions.

Opening an Account with Edward Jones

To open an account, you can visit the Edward Jones website or call (314) 515-2000 to find the advisor closest to you and schedule an appointment.

At the first appointment, your advisor will ask you a series of questions to determine what’s most important to you in your investing. From there, your advisor will develop a tailored strategy that takes into account your risk tolerance and your investing goals.

The firm has multiple branch locations in the U.S. and Canada. Edward Jones has its headquarters in Des Peres, Missouri, just outside of St. Louis.

All information is accurate as of the writing of this article.

Tips for Finding a Financial Advisor

  • Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.  
  • If you find that you don’t have quite enough money to meet the account minimums of many traditional advisors, then you may be interested in a robo-advisor. Robo-advisors often have lower minimums and fees while also helping you reach your investment and retirement goals.
Sours: https://smartasset.com/financial-advisor/edward-jones-wealth-management-review

Jones reviews edward

Should You Invest With Edward Jones?

Edward Jones is a brokerage firm that provides investment advice. With many locations around the U.S., the firm is able to provide a personal approach to their clients in the communities they serve. Research Edward Jones reviews and history—and that of other firms—before choosing one to work with.

What Is Edward Jones?

Edward Jones is a full-service firm founded in 1922. It takes a personal approach to investing by placing advisors in many areas around the U.S. It provides investment advice and help with retirement planning.

The firm built its seven-million-strong clientele by placing locations all around the U.S. and Canada. It has more than 41,000 financial advisors and other employees in more than 16,000 branches around the country. Most offices are modest in size. They have one advisor with an assistant.

Edward Jones attempts to be the "advisor next door." It strives to build long-term rapport with its clients built on trust. It tends to use mutual funds and a basic model of building diversified portfolios for clients who are saving for retirement and other long-term goals.

Should You Invest With Edward Jones?

The choice to invest with Edward Jones is based on location. You have to trust the firm, but you should trust the local advisor first. You should have a good working relationship with your advisor even if the firm is reputable.

One of the first questions you should ask a potential advisor is how they get paid. Edward Jones is paid through revenue sharing with their network of mutual fund companies.

Edward Jones and Mutual Fund Fees

Edward Jones is a big user of load mutual funds, such as American Funds, that offer a large choice of mostly high-quality funds. These funds have various pay structures through mutual fund share classes. They can be front-load funds, back-load funds, or load-waived funds with 12b-1 fees.

Edward Jones doesn't invest client assets in only no-load funds, which may be better for investors than load funds that have sales charges. It's key to understand mutual fund fees before investing, no matter your trust level.

Edward Jones Reviews and Complaints

Although Edward Jones is a highly regarded firm looking out for the interests of the Main Street investor, their history is not without scandal or complaints from clients.

The firm was hit with allegations that it didn't disclose conflicts of interest in 2004. It was alleged that Edward Jones failed to tell clients that the funds being recommended to them were selected because they offered Edward Jones payment. The choice was not made through a rigorous screening. Edward Jones paid a $75 million settlement with the SEC for these allegations.

Edward Jones was then sued in a federal court in 2018. Complaints claimed that the firm had "pressured its more than 16,000 brokers to switch their largely middle-income brokerage customers from commission accounts into advisory accounts that charge as much as 2% of assets annually." The national average for fee-based advisors is just over 1% of assets.

The culture at Edward Jones may be vastly improved since these lawsuits, but it's still best to use the "buyer beware" approach when choosing an advisor.

Bottom Line

Investors should do their homework by researching the history of a firm. Interview the advisor. Ask about their investment philosophy. Ask how they get paid.

NOTE: The information on this site is provided for discussion purposes only. It should not be taken as investment advice. This information does not represent a recommendation to buy or sell securities.

Sours: https://www.thebalance.com/who-is-edward-jones-2466520
How Much Money Do Financial Advisors Make?

Edward Jones Review – High Fees, Poor Reviews

Edward Jones

Some people want to save on investment advice by using free or low-cost services such as robo advisors. There’s nothing wrong with that. 

But if you want to speak with a human, financial advisor, that will cost more. If you want to be able to step into your local advisor’s office, where you deal with the same advisor on every visit, that will cost still more.

For the latter, there is Edward Jones. Edward Jones gets a lot of negative reviews on its fees. Is it really a terrible deal? In this article, we’ll go over who Edward Jones is really for, and if the high fees and bad reviews are justified.

Edward Jones logo

Quick Summary

  • Local offices for an in-person experience
  • High fees in exchange for high level of service
  • Best for people who want completely hands-off investing

Edward Jones Details

Product Name

Edward Jones

Min Investment

$0

Trade Transaction Fee

$4.95

Trade Commissions

Up to 2.50%

Management Fee

0.50% to 1.35%

Account Type

Roth, Traditional, SEP,  SIMPLE, 529, Taxable

Promotions

None

Edward Jones provides investment services to individuals of all sizes and small businesses. It was established in 1922. Edward Jones serves nearly 7 million investors and has the largest retail footprint of any financial services company in America. It also serves clients in Canada.

The CEO of Edward Jones is Penny Pennington. She is also the sixth managing partner. "Edward Jones was built for our clients, and our purpose is to make a difference in their lives and the lives of their families" said Pennington on the Edward Jones History page.

Edward Jones (EJ) is a full-service investment brokerage firm. That means it does estate planning, financial planning, retirement planning, 529 plans, life insurance, long-term care planning, and annuities. EJ is available to investors of any net worth.

This article will focus on the many bad reviews that EJ gets and the perception that it has high fees. High fees are relative; but those that EJ charge are undoubtedly higher than online-only discount brokerages or robo advisors. Even compared to some financial services companies that provide human, financial advice, EJ’s fees are still higher. 

What’s going on here? Are they simply scamming people? In short - no.  We need to dig a little deeper to understand what’s going on.

Some of the products Edward Jones sells come with high fees, such as life insurance and annuities. But that will be true at any other firm for those same financial products.

What about trading stocks? If you're comfortable with self-directed trading, you probably don’t need a full-service firm. But should you choose EJ and you open a "Select Account," you’ll certainly pay a high price. In addition to a $4.95 trade transaction fee, you'll pay the following commissions:

Edward Jones Commissions

EJ says that 36% to 40% of these commissions go straight to the advisor. It should be noted that you can avoid paying the trade commissions above by choosing one of EJ's five asset-based fee pricing models. However, as we'll see later, the percentage of assets under management that you must pay in order to avoid these hefty trade commissions is also high. 

It's clear that EJ is solely intended for people who want hands-off financial and investment management. Meaning, these people don’t have the time to research stocks, rebalance their portfolios, or even know how to manage their portfolios. EJ can do all of this for them.

Additionally, EJ provides human interaction that is much different than what other firms offer. At many firms, you’re limited to speaking on the phone with an advisor, or in the best case, you can video conference with your advisor. But you may also not work with the same advisor every time, leaving little chance to build rapport.

Edward Jones is much different in its approach to human interaction. While you can certainly call your EJ advisor on the phone, you can also go into their local office and sit down with the advisor. As well, this is the same advisor every time. The EJ model allows its advisors to build rapport and establish long-term relationships with a small group of clients.

Related: Best Free Investing Apps

You can read a large number of poor reviews about Edward Jones from across the web. Most people complain about the high fees, losing money, and not getting anything in return for what they are paying.

The common thread with poor reviews seems to come from people who compare EJ management fees to that of robo advisors. But it's important to point out that these are two completely different services for two very different types of investors. In other words, a comparison between the two isn't really "apples to apples."

Other customers complain about the commissions and fees that EJ charges for stock trades. To be clear, Edward Jones is not a good fit for DIY investors. It exists for people who want an advisor they can sit down with in-person who can help them preserve capital and hopefully generate a decent return.

Edward Jones offers six different account levels. See a quick comparison of the account minimums, investment choices, and support levels of each in the chart below.

Investment Minimum

Who Makes Final Trade Decisions?

Advisor Compensation

Stocks, bonds, CDs, mutual funds, ETFs, annuities

You

Commission

Guided Solutions Fund Account

$5,000

Mutual funds, ETFs

You

Asset-Based Fee

Guided Solutions Flex Account

$25,000

Stocks, bonds, CDs, mutual funds, ETFs

You

Asset-Based Fee

 Advisory Solutions Fund Models

$25,000

Portfolio models (Mix of mutual funds and/or ETFs)

Advisor

Asset-Based Fee

Advisory Solutions UMA Models

$500,000

Portfolio models (Mix of mutual funds, ETFs, and/or separately managed allocations)

Advisor

Asset-Based Fee

For "Select Accounts," you only pay trade commissions whenever you buy or sell investments. For all other accounts, Edward Jones will charge a percentage of assets under management that varies by account size.

 Value of Assets

1.35%

Next $250,000

1.30%

Next $500,000

1.25%

Next 1,500,000

1.00%

Next 2,500,000

0.80%

Next 5,000,000

0.60%

Over 10,000,000

0.50%

For EJ's two highest account tiers (Advisory Solutions Fund and UMA Models), it also charges a "Portfolio Strategy Fee." Again, this fee varies by account size as shown below.

 Value of Assets

0.09%

Next $250,000

0.09%

Next $500,000

0.08%

Next 1,500,000

0.07%

Next 2,500,000

0.06%

Next 5,000,000

0.05%

Over 10,000,000

0.05%

You'll pay a $40 annual fee for your first retirement account with Edward Jones and $20 for additional IRAs (waived for account values above $250,000). Retirement accounts are also charged dividend reinvestment and dollar-cost averaging fees. See the full retirement account fee schedule. 

Edward Jones logo
Fidelity Logo
Vanguard Logo

Rating

Trade Fees

$4.95

$0

$0

Advisory Fee

Up to 1.35% AUM

Up to 1.50% AUM

0.30% AUM

Min Investment

$0

$250,000

$50,000

Banking

How Do I Open An Account?

You can visit your local Edward Jones branch to open an account. Using their "Find a financial advisor" tool, you can search by zip code to find the closest EJ office to you.

There's no question that Edward Jones charges some hefty fees. But again, it offers an experience that you can't get at every firm. If you prefer working with a single advisor who can build a long-term, in-person relationship with you, EJ could be worth considering.

When choosing a financial advisor, it’s often best to get references from trusted friends and colleagues. If such people in your inner circle use EJ and are happy with it, that might work for you. Just know that there may be other local fiduciary financial advisors near you that charge lower fees.

If you're comfortable with having your investments managed by a computer algorithm, it's absolutely true that most robo-advisors are significantly cheaper than EJ. And, finally, if you want the freedom to make your own trade decisions, you should probably compare discount stock brokers instead.

Account Types

  • Roth
  • Traditional
  • SEP
  • SIMPLE
  • 529
  • Taxable

Minimum Investment

  • Select Account: $0
  • Guided Solutions Fund Account: $5,000
  • Guided Solutions Flex Account: $25,000
  • Advisory Solutions Fund Models: $25,000
  • Advisory Solutions UMA Models: $500,000

Management Fees

  • First $250,000: 1.35%
  • Next $250,000: 1.30%
  • Next $500,000: 1.25%
  • Next $1,500,000: 1.00%
  • Next $2,500,000: 0.80%
  • Next $5,000,000: 0.60%
  • Next $10,000,000: 0.50%

Portfolio Strategy Fees

  • First $250,000: 0.09%
  • Next $250,000: 0.09%
  • Next $500,000: 0.08%
  • Next $1,500,000: 0.07%
  • Next $2,500,000: 0.06%
  • Next $5,000,000: 0.05%
  • Next $10,000,000: 0.0%

Trade Transaction Fee

$4.95

Trade Commissions

  • Up to $5,999.99: 2.50% (max fee: $150)
  • $6,000 to $9,999.99: 2.00% + $30 (max fee: $230)
  • $10,000 to $24,999.99: 1.50% + $80 (max fee: $455)
  • $25,000 to $99,999.99: 1% + $205 (max fee: $1,205)
  • $100,000 and above: 0.50% + $705 (no max fee)

Access to Human Advisor

Yes

Yes, for Advisory Solutions accounts

Yes, on Advisory Solutions UMA Models accounts

Customer Service Number

1-800-441-2357

Customer Service Hours

Mon-Fri, 7 AM – 7 PM (CT)

Mobile App Availability

iOS and Android

Promotions

None

Sours: https://thecollegeinvestor.com/35050/edward-jones-review/

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Unlike many discount brokerages available online, Edward Jones is a full-service broker. So what really comes with this type of service and is it worth paying more? To put it simply: no.

A full-service broker is someone who provides not only the capability to invest but also services like tax advice and retirement planning, as well as extensive research and knowledge. Unfortunately, being a broker also means they do not have to follow the fiduciary standard.

Commissions & Fees - 5

Customer Service - 10

Ease of Use - 9

Tools & Resources - 8.5

Investment Options - 7

Asset Allocation - 7.5

7

Edward Jones is a full-service investment firm that provides advisory and money management services. While we like the professional and personal investment advice, be aware that it doesn't come cheap. You might be better off using a robo advisor.

What Is Edward Jones?

Founded in 1922, and based in Des Peres, Mo., Edward Jones is a financial services company that focuses its business primarily on individual investors and small businesses. The company is a full-service investment broker, which means that it provides investment management services, much more so than brokerage services for self-directed accounts.

The company serves about 7 million investors and has $1.3 trillion in assets under management. With tens of thousands of branch locations throughout the U.S. and Canada, Edward Jones is one of the brokerage firms wi the most offices across the U.S.

How Does Edward Jones Work?

The main benefit of working with Edward Jones is the financial advisor. The company has 19,000 advisors who work with clients on a one-on-one basis to provide individual investment advice and management. Typically, Edward Jones assigns one financial advisor to each branch office, which is why the company has so many branches. The aim is to provide face-to-face services in as many locations as possible, in contrast to the growing industry trend of engaging clients with an all-online experience.

The financial advisor gets familiar with your financial situation and goals, then builds a customized investment strategy to help you. They construct a portfolio of stocks, bonds and mutual funds that are based on a long-term buy-and-hold strategy.

Investment selection strategy. Advisors filter stocks based on geography, track record, balance-sheet strength and company size, then narrow the field down to those that they believe have sustainable competitive advantages, and then use valuation analysis to determine a fair price for the stock.

Edward Jones uses four different wealth management services based on your own needs and preferences:

  1. Guided Solutions. This service enables you to do your own investing and trading but provides you with investment guidance on stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
  2. Advisory Solutions. This is comprised of fund models, and you can choose from more than 90 research models containing a variety of mutual funds and ETFs. You can have a brokerage account, in which Edward Jones will provide you with investment recommendations, from which you can make individual selections.
  3. Estate Planning and Trust Services. Edward Jones Trust Company works in partnership with local professionals and your financial advisor to provide services.
  4. Client Consultation Group. Your financial advisor has access to a team of more than 5,500 professionals at the company's home office, who provide deep expertise and extensive experience in specialized areas to help manage your investments.

Commissions and Fees

Unlike Edward Jones, a discount brokerage might be a better alternative to control your own investments. Although they might offer fewer service options, they’ll no doubt also have lower fees.

With Edward Jones, you’ll have to pay a yearly account fee of $40 for all retirement accounts, which can be withdrawn directly from either your investment account or your bank account.

This makes Edward Jones a comparatively expensive option, but if you need the extra guidance and full-service broker features, then this could be a good option until you learn the investing ropes for yourself.

Below are the fees for taxable accounts. It does not include the fees of the mutual funds/ETFs used within your account.

Deposit AmountAnnual Fee
First $250,0001.35%
Next $250,0001.30%
Next $500,0001.25%
Next $1,500,0001.0%
Next $2,500,0000.80%
Next $5,000,0000.60%
Over $10,000,0000.50%

Additional Fees

  • Stocks: Buying through dollar-cost averaging — 2.5% of invested amount ($50 minimum)
    IRAs: Annual Fee — $40 and an additional $20 for other IRAs held by the same individual.
  • Possible Investments: Individual stocks, fixed income securities (corporate, government, municipal bonds, CDs, etc.); ETFs; mutual funds — balanced, growth, growth and income, and aggressive funds; money market funds; FDIC-insured bank deposit program.
  • What they don't recommend: Penny stocks, individual junk bonds, options or commodities, or positions that are deemed to be investment fads.
  • Account Types: Regular taxable brokerage accounts (individual and joint), traditional and Roth IRAs, Roth IRA conversions, SEP IRAs, Solo 401(k) plans, single owner defined benefit retirement plans, 401(k) rollovers, custodial accounts, trust accounts, 529 college savings accounts and Coverdell education savings accounts.
  • Account Protection: The Securities Investor Protection Corporation (SIPC) provides $500,000 of coverage for missing securities, including $250,000 for claims of cash awaiting reinvestment. Edward Jones purchases additional protection from underwriters at Lloyd's. This policy covers only theft, misplacement, destruction, burglary, embezzlement or abstraction. Market losses are not covered by SIPC or the additional protection. The aggregate protection limit for all claims is $900 million. The FDIC provides insurance through the insured bank deposit program of up to $250,000 per depositor.

Clearing Agency: Depository Trust Clearing Corporation (DTCC).

Minimum Deposit: There is no minimum deposit to open or maintain a brokerage account. There is, however, a $5,000 minimum to open a Guided Solutions Fund Account.

Edward Jones Pros & Cons

Pros



Local Branch Offices

— They have more local branches than any other broker in the country, which is a nice benefit to have, even if you mostly do your investing online.

Professional Wealth Management

—You're getting the benefit of the investment experience of an investment brokerage that has been in the business for over 90 years. That's tough to beat with DIY investing.

Passive Investment Platform

—Since your money can be professionally managed, you're free to tend to other areas of your life, like your career or business, your family and your personal passions. Edward Jones can handle your entire investment life while you're busy with other things.

Low Fees on High Balances

—The annual management fee is 0.50% per year on account balances greater than $10 million. At that point, the fee is competitive with robo-advisors but offers much more personalized and customized investment services.








Cons



High Fees

—The investment management fees are over 1% per year, unless your portfolio is larger than $2.5 million. You can do better with either a robo-advisor or holding index funds in a discount brokerage account. Commissions on self-trades are not at all competitive with discount brokers. The high fees and commissions will discourage new and small investors.

No Active Trading

—If you're looking to trade securities actively, Edward Jones is not the platform for you. The high fees alone can make active trading extremely difficult to do profitably. It is essentially aimed at buy-and-hold investing.

Discourages Certain Investments

—The company does not provide investment advice on certain types of investments, including penny stocks, junk bonds, options or commodities. Along with the high commissions, this is not a platform to trade such investments.

Potential to Churn Accounts

—full-service broker. Since the broker earns commissions on trades, there is a built-in incentive to trade the account more frequently to increase revenue. Of course, you could choose fee-based account management, which would result in a flat annual fee, rather than individual commissions. It also appears that the DoL fiduciary rule has the potential to limit or eliminate commissions, at least on managed retirement accounts.








Edward Jones Alternatives

In today's investment world there are much better lower-cost options. We now have robo advisors that can manage your money for a fraction of the fees. Specifically, firms like Betterment or Wealthfront are more than suitable for individuals who don't have complex investment portfolios.

If you want access to a human advisor, we would recommend Personal Capital's service over Edward Jones. Not only can they manage your money, but Personal Capital has a free personal finance app that's top-notch.

Summary

For investors with up to $10 million in investable assets, we cannot recommend Edward Jones (here's a list of recommended online stock brokers). In our opinion, Fisher Investments is a better option (full review here).
While at first glance you might not think Edward Jones' 1.35% starting fee per year is much, keep in mind that's not including additional mutual fund fees that in total can put you at 2% or more in fees.

It's been said you should invest like your milk and keep it under 1%. Otherwise, for the amount you are paying, you need to make that much per year in the market just to break even. And if you are doing much better than 2%, the fees are a significant drag on your returns. Jack Bogle, the founder of Vanguard, has been quoted saying over a 50-year timeframe this difference in fees could eat away up to 70% of your returns.

Sours: https://investorjunkie.com/reviews/edward-jones/


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